Put yourself at ease by protecting those you love
17 July 2019
Most Filipinos only start planning for their retirement when they hit the golden age of 50. They feel that it is the most ideal period as that is when most major financial obligations would’ve been fulfilled or nearing fulfilment, such as paying off home mortgages, car loans, and college tuition.
However, most financial planning experts will actually tell you that the best time to prepare for your retirement is in your 20s, or as soon as you start earning income.
The best way to illustrate this point is by comparing two investors – one who started at 25 years old (Anne), and another who started at age 40 (Bryan). In our scenario, both will save the same amount (P1,000 a month), for the same number of years (15 years, or until when Anne is 40, and Bryan is 55), and with the same interest rate (6% p.a.).
However, despite the similarities, by the time they each reach 65 years old, Anne would’ve earned nearly a million pesos more (P1.3 million vs P550,000) than Bryan. Why? Because Anne would’ve had a longer investment period (40 years, from age 25 to 65) than Bryan (just 25 years, from age 40 to 65). This is the magic of compounded interest, coupled with the exponential factor of time.
Therefore, it pays (literally!) to start saving and investing for your retirement as early as possible!
With early retirement planning in mind, here are a few things you should accomplish before reaching 50:
To know more about Dollar Protect Plus and how BPI AIA can help you plan for your retirement, visit the BPI AIA website or go to any BPI branch and talk to a Bancassurance Sales Executive.
You can buy a life insurance at any BPI branch nationwide! Talk to a bancassurance sales executive now!
Get the power to protect yourself and your family with an affordable life insurance plan. Life Ready Plus is easy on the budget, but offers coverage of up to 30 times your yearly payment to support the financial needs of your loved ones.
The plan gives you fast access to coverage and benefits and can match your long-term financial goals when maintained within an appropriate term.
Critical Care Max will help you make more memories by providing financial aid during the early stages of a critical illness. This unit-linked life and health insurance plan offers assistance on your recovery. You can build a health fund that grows over time, depending on your chosen investment, to pay for other medical costs.
In addition, it comes with a hospital confinement benefit that will replace lost income due to hospitalization. This daily cash benefit may also come with optional benefits like cash payout for surgery-related expenses, allowance for consultation fees, and many others.
Let your loved ones enjoy the fruits of your labor even when you’re no longer around. Build Estate Plus is a unit-linked protection plan that will cover your estate taxes after your passing so that you can ease your family’s burden.
It doubles as an investment savings fund that builds Account Value as you pay. It is also integrated with AIA Vitality that provides additional upfront coverage of 20% to your policy and add-ons.
Be in good hands in times of sickness. Let Critical Care Plus, a unit-linked health and life insurance plan, take care of you with financial aid in case of a major illness, so you can focus on getting better and spending more time with your loved ones.
It even gives you more benefits for having good health through the AIA Vitality program that adds 20% upfront coverage and supplemental benefits on your policy.